How do competitive bidding and bid shopping differ?

Bid shopping is distinct in that it refers to the practice of revealing the lowest bid received from a contractor to other bidders, often in an attempt to persuade them to reduce their bids even further. This practice can create a sense of pressure and competition among bidders, but it often leads to ethical concerns and potential issues in maintaining the integrity of the bidding process.

In contrast, competitive bidding generally involves soliciting multiple bids from contractors, fostering a fair and transparent process where each bidder submits their proposal based on the same project specifications. This method is structured to ensure that bidders compete based on their qualifications, capabilities, and price without undue influence from the client or the other bidders.

Choosing the option that highlights the implications of bid shopping emphasizes how it can undermine the competitive bidding process, which is intended to promote fair competition and secure the best value for the project.